on the busa, the TRE makes the computer read 5th gear all of the. w/o the TRE, the bike retards the timing when the shifts into 6th gear which is how they limit the top end. with the TRE, it always reads 5th, so it never retards the timing allowing you to go as fast as you gear !
The TRE was initially intended to bypass the retarded ignition timing in gears 1-4 on Suzuki sportbikes. By making the ECU think the bike was in 5th gear all the time. 5th and 6th gear allow full ignition advance.
TRE's are all basically a 6.8k ohm resistor (which is the 5th gear resistance seen by the ECU). By interrupting the signal from the GPS (gear position sensor) when you install a TRE, the ECU just thinks the bike is always in 5th gear.
When the restricted 'Busas ('01 and newer) came out, they were restricted by an artificially low rev-limiter when the bike is in 6th gear, thus limiting top speed.
Since the TRE makes the ECU think the bike is in 5th all the time, the engine is able to rev higher than the artificially low rev-limit in 6th gear, because the ECU doesn't realize the bike is really in 6th.
The top speed restriction has nothing to do with retarded timing.